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Ferdinando Giugliano

Central Bankers Inflate the Numbers on QE

Large-scale asset purchases have boosted growth, but maybe not as much as many monetary authorities claim.

The U.S. Federal Reserve HQ.

The U.S. Federal Reserve HQ.

Photographer: Ting Shen/Xinhua via Getty

Quantitative easing has been the great monetary policy experiment of the last decade.

Most central bankers believe that the large-scale asset purchases have boosted growth and lifted inflation during repeated crises. Critics respond that the impact has been trivial, and they point to potential side effects, such as promoting excessive risk-taking and fostering inequality. The available evidence appears to support the optimistic take. But to what extent can we trust these results?